Editor's Note:

None of our new trades from Thursday night were opened on Friday. We're making some adjustments. The plan is to try again on CELG, CHKP, SLV, and WFM. Please note our new stop loss on SWK.

-James

Current Portfolio:


CALL Play Updates

Celgene Corp. - CELG - close: 62.67 change: -0.87

Stop Loss: 60.75
Target(s): 69.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/24 update: Our new trade on CELG is not open yet. Both the S&P 500 and CELG opened lower on Friday. The stock managed to hover just above the $62.00 level. Overall I don't see any changes from my Thursday night comments. I am suggesting we try again.

The plan is to buy calls now but only if CELG and the S&P 500 index open positive on Monday morning. However, we'll use an alternative trigger to buy calls at $64.25 just in case CELG rallies and the market does not but we'll want to keep our position size small if this occurs. Our target is $69.00.

*See Entry Point Details Above*

- Suggested Positions -

buy the OCT $65 call (CELG1122J65) current ask $1.52

chart:

Entry on September xx at $ xx.xx
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on September 22, 2011


Check Point Software - CHKP - close: 52.87 change: +0.68

Stop Loss: 50.80
Target(s): 55.75 , 57.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/24 update: Our trade on CHKP is still not open. The stock opened lower but traders bought the dip again near its exponential 200-dma. The bounce off its lows looks like a new bullish entry point. Once again I am suggesting we launch bullish positions now but only if CHKP and the S&P 500 index both open positive in the morning.

We have a stop loss at $50.80. Our targets are $55.75 and $57.75. More aggressive traders can aim higher.

*See Entry Point Details Above*

- Suggested Positions -

buy the OCT $55 call (CHKP1122J55) current ask $1.75

chart:

Entry on September xx at $ xx.xx
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on September 20, 2011


Hewlett Packard - HPQ - close: 22.32 change: -0.48

Stop Loss: 19.75
Target(s): 29.50
Current Option Gain/Loss: -12.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24 update: Our speculative trade on HPQ is open. The stock underperformed on Friday. Shares opened at $22.52, dipped to $21.50 but pared its losses to just -2.1%. Essentially this is a bet that HPQ has seen its lows or is near a bottom. Plus, it's a bet that investors might give the company's new CEO Meg Whitman a little leeway as she tries to turn the company around. Volume was pretty strong on Friday at almost 69 million shares.

I would still consider new positions now. However, more conservative traders may want to look for a potential dip into the $21.00-20.00 zone as their entry point. Or wait for a close over $24.00 or $25.00 as an alternative entry point. Our multi-week target is $29.50.

- Suggested Positions -

Long 2012 Jan. $24 call (HPQ1221A24) Entry $2.14

chart:

Entry on September 23 at $22.52
Earnings Date 11/21/11 (unconfirmed)
Average Daily Volume = 26.6 million
Listed on September 22, 2011


ishares Silver ETF - SLV - close: 29.98 change: -4.94

Stop Loss: 27.25
Target(s): 34.50, 37.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Comments:
09/24 update: Wow! It looks like we were too early in calling a bottom for silver. Rumors that the CME would raise margin requirements on silver trading helped fuel a massive sell-off in metals. Gold, Silver and copper all crumbled on Friday. Our trade did not open since shares of SLV gapped open lower ($31.80) underneath our stop loss (33.45).

After the closing bell on Friday the CME did indeed raise margin requirements. So it seems like the news was leaked. Silver might see a bounce on Monday since the sell-off on higher margins has already happened or it might see a brief sell-off Monday morning but I would expect it to rebound intraday. We still want to buy the SLV.

I am suggesting we buy calls now at the open on Monday. Nimble traders might want consider waiting for another dip near $29.00 as their entry point. Readers might want to keep their position size small because the SLV has been so volatile. We will use a wide (aggressive) stop loss at $27.25. More conservative traders will want to consider a stop closer to $28.50 or $29.00 instead. The low on Friday was $29.05. Our new upside targets are $34.50 and $37.75. We might consider a higher target for the January calls. Keep in mind that the 200-dma and the $38.00 level could be new resistance.

NOTE: We have updated our option strikes!

- Suggested Positions - (Small Positions)

buy the NOV $32 call (SLV1119K32) current ask $2.15

- or -

buy the 2012 Jan $35 call (SLV1221A35) current ask $2.12

chart:

Entry on September 26 at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 24.4 million
Listed on September 22, 2011


Whole Foods Market - WFM - close: 68.20 change: +0.57

Stop Loss: 64.90
Target(s): 73.00, 77.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/24 update: Our new trade in WFM is not open yet. Both the stock and the S&P 500 opened lower on Friday. Traders quickly bought the dip in WFM. The low was $66.51. I am suggesting we try again. The plan is to buy calls now but only if WFM and the S&P 500 open positive on Friday. If triggered we'll use a stop loss at $64.90.

Please note that I'm listing an alternative entry point. Just in case WFM rallies without the market. We want to open very small bullish positions if WFM hits $70.25 regardless of where the S&P500 is. If this happens we'll use a higher stop loss at $66.49 and adjust our targets to $74.00 and $77.50.

*See Entry Details Above*

- Suggested Positions - (Small Positions)

buy the OCT $70 call (WFM1122J70) current ask $2.68

- or -

buy the NOV $72.50 call (WFM1119K72.5) current ask $3.80

chart:

Entry on September xx at $ xx.xx
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on September 22, 2011


PUT Play Updates

Stanley Black & Decker - SWK - close: 50.53 change: +2.70

Stop Loss: 51.25
Target(s): 50.25, 46.00
Current Option Gain/Loss: Oct$50: + 39.4%, & Oct$55: +41.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24 update: Uh-oh! Warning. Danger, Will Robinson! Shares of SWK are seeing a significant bounce on Friday. The stock dipped to $47.27 and then surged more than +5% to close back above the $50.00 mark. The move on Friday looks like a bullish reversal pattern. More conservative traders will want to exit immediately. We are lowering our stop loss down to $51.25. No new positions at this time.

- Suggested Positions -

Long OCT $50 put (SWK1122V50) Entry $1.90

- or -

Long OCT $55 put (SWK1122V55) Entry $3.90

09/24 new stop loss @ 51.25
09/22 new stop loss @ 52.25
09/22 1st target exceeded on gap down at $49.12
bid Oct. $50 put @ 3.12 (+64.2%)
bid Oct. $55 put @ 5.75 (+47.4%)
09/21 new stop loss @ 56.25

chart:

Entry on September 12 at $54.78
Earnings Date 10/18/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on September 10, 2011